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JERSEY CHAMBER OF COMMERCE Official Response To The
Medium Term Financial Plan Additions
ThereisnodoubttheMediumTermFinancialPlanAdditions(MTFP)releasedtodaywilladverselyaffect the cost of doing business in Jersey. The introduction of a sewage waste charge and proposed review of commercial rates in 2018 will inevitably mean greater infrastructure expenditure costs, which all companies in Jersey will have to absorb.
The proposed link to waste charges, solids by weight and liquid by water usage, would appear to be a straightforwardmethodof assigningtariffs.However,at a time whenthe island'sgovernmentand Visit Jersey are doing all they can to support the tourism industry, businesses in this sector, such as hotels, restaurantsand visitor attractionsare likely to be some of the most affected by the tax.
The proposed addition of a userpay' charge for health services, of up to 1% of income, is another tax islandersand businesseswillalso have to absorb, whichin additionto the sewage wastecharge further underminesJersey's 20 means 20 tax promise.
There are some positives aspects of the MTFP for the business community. Confirmation that the island's GST rate of 5% is to remain static will be widely acknowledged as a positive move by the government. Especially by those in the retail sector, who continue to compete with online shopping in what is widely regarded by those in the sector, as an uneven playing field, while a GST de minimis threshold on imports exists.
Kristina Le Feuvre, President of the Chamber of Commerce said: "A streamlined and more efficient government and civil service is something the business community in Jersey has long called for. The States efficiency and savings target of £73 million by 2019 are bold, but these cutbacks, along with the introductionof new business charges, must not be to the detriment of commerce across the island.
Efficiencies must be targeted. The recent cutbacks to the States Statistic Unit and a reduction in their reporting capabilitiesis a setback, as businesses rely on their output as key performance indicators.
While Jersey's business community remains financially committed to paying its way, charges must be fair and at a level that does not stifle investment, which is key to the island's future economic stability and growth."